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Revision of depreciation Equipment with a cost of $ 8 0 5 , 2 0 0 has an estimated residual value of $ 7 3
Revision of depreciation Equipment with a cost of $ has an estimated residual value of $ has an estimated useful life of years, and is depreciated by the straightline method. a Determine the amount of the annual depreciation. b Determine the book value after full years of use. $ c Assuming that at the start of the year the remaining life is estimated to be years and the residual value is estimated to be $ determine the depreciation expense for each of the remaining years. $ Feedback Check My Work Asset minus residual value equals depreciable cost. Straightline method allocates the depreciable cost of the asset equally over the expected useful life. The book value is the fixed asset cost less accumulated depreciation. Revising depreciation is necessary when estimates of residual values andor useful lives of fixed assets change due to abnormal wear and tear or obsolescence.
Revision of depreciation
Equipment with a cost of $ has an estimated residual value of $ has an estimated useful life of years, and is depreciated by the straightline method.
a Determine the amount of the annual depreciation.
b Determine the book value after full years of use.
$
c Assuming that at the start of the year the remaining life is estimated to be years and the residual value is estimated to be $ determine the depreciation expense for each of the remaining years.
$
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Check My Work
Asset minus residual value equals depreciable cost. Straightline method allocates the depreciable cost of the asset equally over the expected useful life.
The book value is the fixed asset cost less accumulated depreciation.
Revising depreciation is necessary when estimates of residual values andor useful lives of fixed assets change due to abnormal wear and tear or obsolescence.
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